Finance Minister Nirmala Sitharaman urges banks to be friendly with customers | Big news for customers of SBI, HDFC, and ICICI Bank, announced by Finance Minister
On Monday, the union’s finance minister Nirmala Sitharaman said banks should focus more on helping their customers so that borrowers’ debt system does not become a problem.
However, Sitharaman has clarified that banks do not have to tolerate bad credit ratings by taking any serious risks with the proposal.
Suggestion to borrow money without a problem
At the same time, the Minister of Finance also made it clear that banks should not compromise consumer lending policies. In a meeting between representatives of the industry and the Minister of Finance, the first founder related to the banking business suggested lending money without any problems.
Loan support if sufficient balance is on the table. At a meeting between representatives of the industry and the Minister of Finance, the founder of the bakery business suggested that the loan be obtained without suffering, where SBI chief executive Dinesh Kumar Khara said initial concerns were more on equality side fully guaranteed. Later, he also mentioned the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
Emphasizing that the person asking the question about the woman running the founding business, Sitharaman had a few suggestions about the banking community and spoke out against their attitude.
“At first, Mr. Khara gave a ridiculous answer. After being told in some way, he started talking about a government-sponsored program, the CGTMSE,” he said.
The customer needs care
He made recommendations to banks and talked about their position. The Minister of Finance said, ‘Banks must be very friendly with customers. But it should not be at the level of taking significant risks. You do not need to take it. But you need to remember customer comfort and be very friendly.
Khara said the focus was on the increasing reliance on digital use to the end, which would ensure secure information. He said that the bank would go digital to lend money in the next two months. Also, as long as there is cash flow in the bank, growth in small businesses can affect what a person lends over time.
A former finance secretary and finance minister, Tarun Bajaj, said banks should be aware of borrowing more and supporting economic growth. He added that corporate balances are in a better position now.
Khara said it is a common perception that banks do not lend money but pointed to very high levels of limited use of authorized operating limits, which often indicate a decline in economic demand.
Even after improving by 9 points per quarter, he said lower spending reached 52% for major South African lenders.
Khara said his hope for future small business lending comes from commercial banking experience and lending transformation, where balance alone is not essential, but access to business finance also helps.
The head of the SBI expressed concern about recognizing property in rural areas by the finance minister, saying that these areas would still be evacuated due to the epidemic.
“If there is going to be a rural liberation in the way we identify accounts, the pastoral industry still needs support, and although we are trying to extend it, nothing can be done in the banks. But yes, concerning the recovery of stress on the accounts, if there may be some relief, it may require the intervention of the regulator, “he said.
Edited by- Subbuthai Padma
Published by- Radhika.N
